New York-based hedge fund Libra Advisors will close its doors to outside investors, the latest firm to choose life as a family office over dealing with new regulatory headaches and the vicissitudes of investors.

Libra founder Ranjan Tandon told clients that the fund will return outside capital by the end of the year. Tandon, who founded Libra in 1990, said that new regulations, trading rules and expected higher taxes were behind his decision. He said the new environment "will take time away from what I enjoy most, investing."

"After due reflection, I have decided to retire from managing client funds and will redeem all external capital," he wrote. "I regret any losses that you have incurred, especially losses borne by investors that began investing with Libra more recently."

The $2 billion hedge fund suffered losses last year.

Tandon also cited market difficulties for his decision to close Libra, and wrote that those troubles have been exacerbated by "unconventional monetary policies."

Libra's wind-down was first reported by The Wall Street Journal.

Tandon said that he would refashion Libra as a family office. In doing so, he joins the likes of George Soros, Carl Icahn, John Arnold, John Henry and Jerry Weintraub, all of whom have made similar moves in recent years.

In the Nov. 9 letter, Tandon said it would waive management fees for investors who were in the red as of the end of the year.